Following the Russian incorporation of the Crimea the West has imposed sanctions on the Russian banking sector as well as on Russian and Ukrainian individuals with close contacts to the Putin regime. In spite of these somewhat symbolic sanctions, the first effects are already apparent: capital is flowing out of Russia and planned European investments in the country are being put on hold. Matthias Ruchser from the German Development Institute examines how recent divergences between the West and Russia might impact the energy transition in Germany and Europe. Russia has more to lose than these symbolic sanctions, as its exports are based primarily on the country’s rich raw materials. These are not only primary energy sources such as crude oil, natural gas and coal, but also significant portions of the worldwide stocks of lead, iron, gold, cobalt, copper, nickel, zinc, tin and metals of the platinum group. This list underscores the dilemma facing the Russian export sector. The major reliance on raw materials rapidly leads to losses, as was the case most recently in 2008 … Continue reading Russia and the Energiewende – is there a connection?